Rare Utilities Breakdown Deepens Concerns of Recession Ahead
Chris Kimble | Oct 04, 2023 12:04AM ET
In early September, we warned readers that Utilities were breaking down and that this would have an adverse effect on the stock market.
Since then, the breakdown has become more pronounced. And stocks have been under pressure.
Today we provide an updated monthly chart of the Dow Jones Utilities Index, highlighting the clear breakdown below its uptrend line and 40-month moving average.
The Dow Jones Utilities Index has broken below its 40-month moving average only 2 times in the past 25 years. And both times recessions followed.
This marks the 3rd time in 25 years that Utilities have fallen below this moving average line, different results this time? Stay tuned.
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